Despite 20 years of investing experience, I still manage to miss some investment categories sometimes.Sure enough, a new category popped onto my radar by accident (more on that in a moment), and these are solid dividend investments paying 6% or more. Perhaps best of all, they appear to be as safe as preferred stocks.
The securities are called exchange-traded debt, or ETDs, so named because they are debt instruments that trade on the stock exchange. The trouble I’ve always had with bonds is that they can be difficult to trade. Many companies have attractive debt, but tracking down CUSIP numbers to trade them can be tricky. In addition, the liquidity of the trades is such that they are sometimes difficult to get executions on at the level you desire.